The transition checklist, counted back from your own end date.
Affected coverage ends February 28, 2027 for most groups — but your notice carries your specific sunset date, and that's the one to plan from. Work backward through these five phases.
The confirmed dates
- September 1, 2026Employer notices beganPassed
Health Net began mailing employer notifications and stopped writing new commercial group business. This was also the final new-business effective date.
- September 3, 2026Email notices followedPassed
Affected groups also received notice by email.
- October 1, 2026CaliforniaChoice underwriting promotion opens
For Health Net direct groups with new-business effective dates from October 1, 2026 through January 1, 2027, CaliforniaChoice accepts a fully reconciled Health Net invoice in place of a DE 9C.
- January 1, 2027Last CalChoice effective date with Health Net
Health Net remains available to CaliforniaChoice new business and renewals through the January 1, 2027 effective date. After renewal, CalChoice Health Net members receive a full 12-month plan cycle.
- February 1, 2027Final renewal effective date
The final Health Net renewal effective date, subject to Health Net's formal transition guidelines and case-specific exceptions.
- February 28, 2027Coverage ends
Most affected commercial group policies end, or as otherwise permitted by the applicable contract and regulatory requirements. Each group has been given its specific sunset date in writing — confirm yours rather than assuming this one.
Five phases, named owners.
Anchor day zero to your group's sunset date. If you're already inside one of these windows, start there and compress the earlier steps rather than skipping them.
- 01HR + broker120+ days out
Establish the facts
- Pull the Health Net notice and confirm your group's specific sunset date in writing — do not assume the February 28 default applies to you.
- Confirm which lines you hold with Health Net: medical, standalone dental, standalone vision, EGWP. Each may transition on its own schedule.
- Export a current census: enrollment tier, home ZIP, and plan election for every enrolled employee.
- Ask employees, through a neutral channel, to flag physicians and facilities they need to keep. Do not frame this as a plan change yet.
- Identify anyone in active treatment or on continuous medication, so continuity of care drives the timeline rather than reacting to it.
What breaks if you skip itSkip the written sunset date and you can plan an entire transition around the wrong deadline.
- 02Broker90 days out
Market the group
- Quote available California carriers for your group size and counties.
- Run each candidate network against the employee roster — physicians, medical groups, and hospitals.
- Compare formularies for the medications your employees actually take.
- Price fully insured against level-funded and, for groups of 1–100, CaliforniaChoice.
- Model employer and employee contributions at each option so leadership sees the budget impact before anything is announced.
What breaks if you skip itQuoting without the roster check is how an employer picks a plan that excludes a popular medical group.
- 03Leadership + broker60 days out
Decide, lock the date, and notify employees
- Select the carrier and plan lineup, and get leadership sign-off on the contribution strategy.
- Choose the effective date so there is no gap between it and the end of Health Net coverage.
- Get the replacement carrier's prior-carrier deductible credit rules in writing — what it credits, what proof it needs, and its filing deadline.
- Submit the application, underwriting materials, and any required participation documentation.
- Confirm in writing whether you need to terminate Health Net early, and the notice your agreement requires.
- Send the employee announcement now. A mid-plan-year carrier change generally carries a 60-day advance notice obligation, so this is the deadline, not the polite target — see the notice templates.
What breaks if you skip itA one-day gap between coverages is a self-funded claim nobody budgeted for — and a notice sent at 30 days may already be late.
- 04HR + broker30 days out
Enroll and handle continuity of care
- Hold enrollment meetings, live and recorded, in the languages your workforce actually uses.
- Ask anyone with year-to-date medical spend for their Health Net Explanation of Benefits statements, so deductible credit can be filed on time.
- Give employees a provider-lookup path for the new network and a named person to ask.
- Start re-establishing active prior authorizations with the new carrier.
- Collect elections and reconcile them against the census before submitting.
What breaks if you skip itPrior authorizations left to the effective date become a pharmacy counter problem on day one.
- 05HR + payroll + brokerEffective date and first payroll
Land it cleanly
- Confirm carrier confirmation of enrollment for every employee before the effective date.
- Update payroll deductions to the new rates and audit the first affected payroll line by line.
- Reconcile the first carrier invoice against enrollment and against what payroll actually withheld.
- Confirm ID cards reached employees, and keep an escalation path open for the first 30 days.
- Handle COBRA and Cal-COBRA continuants — they move too, and are the most commonly missed population.
What breaks if you skip itDeduction errors surface on a paycheck, which is the most expensive place for HR to find them.
Timing questions.
How long does a Health Net group transition take?
Plan on roughly four months of working time: facts and census at 120 days out, marketing and network analysis at 90 days, the carrier decision and the employee announcement at 60 days, enrollment and continuity of care at 30 days, then implementation and payroll reconciliation at the effective date. The 60-day point is the one with the least flexibility — a mid-plan-year carrier change generally requires notice to enrollees at least 60 days before the change takes effect, so compressing the front half of the schedule squeezes a legal deadline rather than just a courtesy.
When exactly does our Health Net coverage end?
Most affected California commercial group policies end February 28, 2027, or as otherwise permitted by the applicable contract and regulatory requirements. Health Net gave each group its own sunset date in the notice it began mailing September 1, 2026, so confirm your date in writing and plan backward from that rather than from the general date.
Can we terminate Health Net before the end of our policy period?
Yes. Health Net's transition guidance states employer groups may elect to terminate their contract before the end date, provided they give timely notice in accordance with their Health Net agreement. Employers should confirm the required notice period in writing before committing to a replacement effective date.
What happens to employees on COBRA during the transition?
COBRA and Cal-COBRA continuants are covered under the group plan, so they transition with it. They are also the population most often missed, because they are not on the active payroll census. Pull them deliberately and include them in enrollment and communications.
Who should own the Health Net transition internally?
HR typically owns employee communication and enrollment, payroll owns deduction accuracy, and leadership owns the contribution decision. The broker should own carrier marketing, network and formulary analysis, implementation, and invoice reconciliation. Problems cluster at the handoffs, so name an owner for each phase before you start.
Want us to run this checklist for you?
We take phases two through five: marketing the group, checking networks against your roster, running enrollment, and making sure the first payroll is right. You keep oversight.
More on the Health Net transition
Affected group coverage ends February 28, 2027 unless your contract says otherwise. These cover the decisions that follow from that.
- Health Net is exiting California's group marketThe announcement, the confirmed timeline, and what is and isn't affected.Read it
- Replacement carrier options for California employersHow to compare the California group market on network match, formulary, and funding — not just rate.Read it
- Employee notice templatesCopy-and-paste letter, employee FAQ, and payroll-deduction notice for a carrier change.Read it
Sources
- Health Net — Commercial Group Exit and Transition InformationPrimary
- Word & Brown — Health Net Group Market Exit
- Becker's Payer Issues — Centene's Health Net to exit commercial group market in 2 states
- California DMHC — Individual and Small Group Aggregate Premium Rate ReportPrimary
- CMS — ACA Implementation FAQs Set 5, Q4 (60-day advance notice of material modification, PHS Act §2715(d)(4))Primary
- 29 CFR §2520.104b-3(d) — Summary of material reduction in covered services or benefitsPrimary
- Health Net — Prior-Carrier Medical Deductible Credit (small business group)Primary
- Blue Shield of California — Small Group Underwriting Guidelines (prior deductible credit)Primary
- UnitedHealthcare — California Small Business Deductible Credit Form and guidelinesPrimary
Facts on this page were last verified against these sources on 2026-09-21. Carrier transition guidelines can change; confirm your group's specific sunset date in the notice Health Net sent you. This page is general information for California employers, not legal, tax, or ERISA advice.